23) Republic Industries decides to price delivery services according to the results of...
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Accounting
23)
Republic Industries decides to price delivery services according to the results of a recent activity-based costing (ABC) study. The study indicates Republic should charge $8 per order, 2% ofannual order value for general delivery costs, $1.25 per item, and $30 for delivery.
A year later, Republic collected the following information for two of its best customers:
Cost driver Customer C Customer D
Number of orders 18 8
Number of deliveries 10 10
Total number of items 2,000 4,000
Annual order value $120,000 $80,000
What are the total delivery costs charged to Customer C during the year?
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